Multi-level optimal dispatch strategy and profit-sharing mechanism for unlocking energy flexibilities of non-residential building clusters in electricity markets of multiple flexibility services

Abstract

Well-managed demand-side flexibility can effectively alleviate the stress of power systems caused by the increasing renewable energy penetration. The development of smart grid technologies provides win-win opportunities for system operators and demand-side users. Buildings have great flexibility potential through smart control of flexible loads, passive thermal mass storage and distributed active storage. However, a few fundamental problems on flexibility quantification, optimal coordination and profits sharing are faced when aggregating buildings to reach sufficient size for biding multiple flexibility services in electricity markets. Therefore, this paper proposes a multi-level optimal dispatch strategy and profit-sharing mechanism for non-residential building clusters to maximize flexibility profits and reduce the complexity of the optimization. At building level, a model-based quantification method is developed to evaluate flexibility potential of multiple resources. At cluster level, the coordinated bidding strategy of the aggregator is proposed, and flexibility profits are distributed based on the cooperative game theory at the post-market stage. Test results show that the proposed dispatch strategy can reduce up to 20.4% of daily electricity cost at cluster level and ensure profit increase of individual buildings with different flexibility characteristics. The active participation of building clusters in electricity markets could reduce the use of costly backup generators.